The best residential mortgage rates 16.04.21 | moneyfacts.co.uk

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Published: 16/04/2021

First-time buyers who are looking to take that first step onto the property ladder will be pleased to learn that the choice of mortgages on offer to those with a 5% deposit has risen in the last few weeks, and there are hopes that availability could increase even further when the Government’s mortgage guarantee scheme is fully launched later this month. That said, average rates for this sector of the market have begun creeping up, though as the table below highlights, there are still some great deals available. The same can be said for those looking to remortgage or move home, particularly as rates in these sectors remain competitive, so now could be a great time for homeowners to see if they can reduce their repayments.


However, it remains the case that borrowers should look beyond rate alone when deciding the best deal for their circumstances, as the lowest headline rate may not be the most appropriate option. Things like fees, incentives and any flexible features can make a huge difference to the overall cost of a mortgage; this is where a broker can really help narrow down the options, so borrowers seeking the best deal for their individual needs may want to consider going down this route.

The best remortgage rates

Provider

Rate

Initial rate period

Product fee

 

Platform

1.06% fixed

Two years

£1,499

Speak To A Broker

TSB

1.44% fixed

Three years

£995

Speak To A Broker

HSBC

Platform

1.26% fixed

1.26% fixed

Five years

Five years

£1,499

£1,499

Speak To A Broker

Speak To A Broker

Platform continues to offer the lowest rate in the two-year fixed remortgage chart this week offering 1.06% (3.9% APRC) fixed until 31 July 2023, which then reverts to 4.34% variable. This deal is available to those looking for a 60% loan-to-value (LTV) mortgage. It charges £1,499 in product fees and comes with the incentives of free valuation, no legal fees and £250 cashback. The lowest three-year fixed rate in the remortgage chart this week came from TSB, with a rate of 1.44% (3.1% APRC) fixed until 31 August 2024 before reverting to 3.59% variable. The deal is available at up to 60% LTV and charges £995 in product fees. It has the incentives of free valuation and no legal fees. HSBC has the joint-lowest rate in the five-year fixed remortgage chart offering 1.26% (2.8% APRC) fixed to 31 May 2026, after which it reverts to 3.54% variable. This deal is available at up to 60% LTV and it charges £1,499 in product fees, with incentives of free valuation and legal fees. Meanwhile, Platform’s 60% LTV deal of 1.26% (3.2% APRC) is fixed until 31 July 2026 and reverts to 4.34% variable thereafter, with product fees of £1,499 and incentives of free valuation and legal fees as well as £250 cashback.

Compare remortgages

The best mortgage rates for home-movers

Provider

Rate

Initial rate period

Product fee

 

Platform

1.06% fixed

Two years

£1,499

Speak To A Broker

TSB

1.34% fixed

Three years

£995

Speak To A Broker

HSBC
 Platform

1.26% fixed

Five years
 

£1,499

Speak To A Broker

Platform

1.26% fixed

Five years

£1,499

Speak To A Broker

 

The lowest rate in the two-year fixed moving home chart this week comes from Platform, which offers 1.06% (3.8% APRC) fixed until 31 July 2023 and then reverts to 4.34% variable. This deal is available to those looking for a 60% LTV mortgage and charges £1,499 in product fees, and it boasts incentives of free valuation and £250 cashback.
TSB continues to have the lowest rate in the three-year fixed moving home chart this week, with its deal offering a fixed rate of 1.34% (3.1% APRC) until 31 August 2024 which then reverts to 3.59% variable. The mortgage is available at up to 60% LTV and it charges £995 in product fees, and comes with the incentive of free valuation.


HSBC and Platform both had the lowest rates in the five-year fixed moving home chart this week. HSBC offers 1.26% (2.7% APRC) fixed until 31 May 2026 before reverting to 3.54% variable. This deal is available at up to 60% LTV and it charges £1,499 in product fees, though it comes with the incentive of free valuation (those taking a remortgage get free legal fees too). Meanwhile, Platform offers 1.26% (3.2% APRC) fixed until 31 July 2026, after which it reverts to 4.34% variable. This deal is available at up to 60% LTV. It charges £1,499 in product fees and comes with the incentives of free valuation and £250 cashback.

Compare remortgages

The best first-time buyer mortgages

Provider

Rate

Initial rate period

Product fee

 

Coventry Building Society
Platform  
Clydesdale Bank

 2.99% fixed
 
 2.99% fixed
 2.99% fixed

 Two years
 
 Two years
 Two years

£999
 
 £1,499
 £1,999


Speak To A Broker

Clydesdale Bank

3.28% fixed

Five years

£1,999

Speak To A Broker

Three lenders have the lowest rate on deals without localised opening restrictions in the two-year fixed first-time buyer chart this week. Coventry Building Society offers 2.99% (4.2% APRC) fixed until 30 June 2023, which then reverts to 3.99% variable. This deal is available at up to 90% LTV and charges £999 in product fees, and it comes with the incentive of free valuation (up to a maximum of £670). Platform offers 2.99% (4.2% APRC) fixed until 31 July 2023 and then reverts to 4.34% variable. This deal is available to those looking for a 90% LTV mortgage. It charges £1,499 in product fees and comes with the incentives of free valuation and £250 cashback. Finally, Clydesdale Bank offers 2.99% (4.5% APRC) fixed until 30 June 2023, after which it reverts to 4.55% variable. It is available at up to 90% LTV and charges £1,999 in product fees, though no incentives are on offer for first-time buyers.

Meanwhile, the lowest rate available in the five-year fixed first-time buyer chart that is not a guarantor mortgage or a deal with localised opening restrictions comes from Clydesdale Bank. The mortgage is fixed at 3.28% (4.2% APRC) until 30 June 2026, after which it reverts to 4.55% variable. This deal is available at up to 90% LTV and charges £1,999 in product fees, though again, no incentives are on offer for this sector of the market.

Compare first-time buyer mortgages

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